Another piece to the puzzle on Behavioral Science...

The Irrationality of Irrationality: The Paradox of Popular Psychology

In 1996, Lyle Brenner, Derek Koehler and Amos Tversky conducted a study involving students from San Jose State University and Stanford University. The researchers were interested in how people jump to conclusions based on limited information. Previous work by Tversky, Daniel Kahneman and other psychologists found that people are “radically insensitive to both the quantity and quality of information that gives rise to impressions and intuitions,” so the researchers knew, of course, that we humans don’t do a particularly good job of weighing the pros and cons. But to what degree? Just how bad are we at assessing all the facts?

S*** happens: The economics version

hattip to The Big Picture
Disclaimer: The specific securities identified and discussed should not be considered a recommendation to purchase or sell any particular security. The commentaries are for informational and educational purposes only. Rather, these commentaries are presented solely for the purpose of illustrating my investment approach. These commentaries contain my views and opinions at the time such commentaries were written and are subject to change thereafter. Under no circumstances should a person act upon the securities mentioned without first consulting an investment adviser as to the suitability of such investments for his specific situation. These commentaries may include “forward looking statements” which may or may not be accurate in the long-term. It should not be assumed that any of the securities transactions or holdings discussed were or will prove to be profitable. Past performance is no guarantee of future results.

Update: Mr. Market Looking through the Looking Glass

I made quick observations on ELNK's balance sheet. I concluded that reproductive asssets stood around $8. With the conclusion of 2011, revisions to the balance sheet assessment are out.

ELNK net asset value consideration stands around $8... For the third quarter 2011, ELNK had $910.52 million in long-term debt and lease obligations and $36.18 million in tangible shareholders’ equity. Long-term debt stands at $910 million with ITC^DeltaCom senior secured notes due April 2016. Capital lease obligations for payment up to the year 2015 average out to being $3.42 million. Aside from the portion of current long-term debt due (ample cash to cover the near maturing debt), the amount of debt incurred due the acquisition poses a large enough margin for error to allow the newly acquired businesses ample time to prove their soundness. Despite the changes in capital structure, ELNK net debt leverage ratio and gross debt leverage ratio remain relatively low against peers like TW telecom (TWTC) and Level 3 Communications (LVLT).

Disclaimer: The specific securities identified and discussed should not be considered a recommendation to purchase or sell any particular security. The commentaries are for informational and educational purposes only. Rather, these commentaries are presented solely for the purpose of illustrating my investment approach. These commentaries contain my views and opinions at the time such commentaries were written and are subject to change thereafter. Under no circumstances should a person act upon the securities mentioned without first consulting an investment adviser as to the suitability of such investments for his specific situation. These commentaries may include “forward looking statements” which may or may not be accurate in the long-term. It should not be assumed that any of the securities transactions or holdings discussed were or will prove to be profitable. Past performance is no guarantee of future results.

Herd Thinking

http://www.scientificamerican.com/article.cfm?id=herd-thinking

Disclaimer: The specific securities identified and discussed should not be considered a recommendation to purchase or sell any particular security. The commentaries are for informational and educational purposes only. Rather, these commentaries are presented solely for the purpose of illustrating my investment approach. These commentaries contain my views and opinions at the time such commentaries were written and are subject to change thereafter. Under no circumstances should a person act upon the securities mentioned without first consulting an investment adviser as to the suitability of such investments for his specific situation. These commentaries may include “forward looking statements” which may or may not be accurate in the long-term. It should not be assumed that any of the securities transactions or holdings discussed were or will prove to be profitable. Past performance is no guarantee of future results.

Michael Lee-Chin: Do well. Do good. Be happy | PROFITguide.com

Michael Lee-Chin: Do well. Do good. Be happy | PROFITguide.com

Disclaimer: The specific securities identified and discussed should not be considered a recommendation to purchase or sell any particular security. The commentaries are for informational and educational purposes only. Rather, these commentaries are presented solely for the purpose of illustrating my investment approach. These commentaries contain my views and opinions at the time such commentaries were written and are subject to change thereafter. Under no circumstances should a person act upon the securities mentioned without first consulting an investment adviser as to the suitability of such investments for his specific situation. These commentaries may include “forward looking statements” which may or may not be accurate in the long-term. It should not be assumed that any of the securities transactions or holdings discussed were or will prove to be profitable. Past performance is no guarantee of future results.

HSGL - Entrepreneurial Aptitude Test - Home

HSGL - Entrepreneurial Aptitude Test - Home


Disclaimer: The specific securities identified and discussed should not be considered a recommendation to purchase or sell any particular security. The commentaries are for informational and educational purposes only. Rather, these commentaries are presented solely for the purpose of illustrating my investment approach. These commentaries contain my views and opinions at the time such commentaries were written and are subject to change thereafter. Under no circumstances should a person act upon the securities mentioned without first consulting an investment adviser as to the suitability of such investments for his specific situation. These commentaries may include “forward looking statements” which may or may not be accurate in the long-term. It should not be assumed that any of the securities transactions or holdings discussed were or will prove to be profitable. Past performance is no guarantee of future results.

Kiplinger says Earthlink Attractive in Recent Article (ELNK, MSFT, YHOO) : Small Stocks Radar

 Great summary by Kiplinger on my previous analysis about Earthlink here.

Kiplinger says Earthlink Attractive in Recent Article (ELNK, MSFT, YHOO) : Small Stocks Radar

Competition Is Healthy for Governments, Too

Business Day

Competition Is Healthy for Governments, Too

By N. GREGORY MANKIW

Published: April 14, 2012

Companies, as well as people, can vote with their feet if they don’t like the way their state or local government is treating them.

Disclaimer: The specific securities identified and discussed should not be considered a recommendation to purchase or sell any particular security. The commentaries are for informational and educational purposes only. Rather, these commentaries are presented solely for the purpose of illustrating my investment approach. These commentaries contain my views and opinions at the time such commentaries were written and are subject to change thereafter. Under no circumstances should a person act upon the securities mentioned without first consulting an investment adviser as to the suitability of such investments for his specific situation. These commentaries may include “forward looking statements” which may or may not be accurate in the long-term. It should not be assumed that any of the securities transactions or holdings discussed were or will prove to be profitable. Past performance is no guarantee of future results.